AMERIGO RESOURCES LTD (ARG.CA) Stock Fundamental Analysis
TSX:ARG - Toronto Stock Exchange - CA03074G1090 - Common Stock - Currency: CAD
ARG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 797 industry peers in the Metals & Mining industry. ARG gets an excellent profitability rating and is at the same time showing great financial health properties. ARG scores decently on growth, while it is valued quite cheap. This could make an interesting combination. Finally ARG also has an excellent dividend rating. These ratings could make ARG a good candidate for value and dividend and quality investing.
1. Profitability
1.1 Basic Checks
In the past year ARG was profitable.
In the past year ARG had a positive cash flow from operations.
ARG had positive earnings in each of the past 5 years.
Each year in the past 5 years ARG had a positive operating cash flow.
1.2 Ratios
ARG has a better Return On Assets (9.31%) than 93.60% of its industry peers.
ARG has a better Return On Equity (17.61%) than 94.23% of its industry peers.
ARG has a Return On Invested Capital of 15.53%. This is amongst the best in the industry. ARG outperforms 97.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for ARG is below the industry average of 12.25%.
The last Return On Invested Capital (15.53%) for ARG is above the 3 year average (8.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROIC | 15.53% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
1.3 Margins
ARG has a better Profit Margin (9.51%) than 92.60% of its industry peers.
ARG's Profit Margin has declined in the last couple of years.
ARG has a Operating Margin of 20.77%. This is amongst the best in the industry. ARG outperforms 92.72% of its industry peers.
ARG's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 24.63%, ARG belongs to the best of the industry, outperforming 89.71% of the companies in the same industry.
ARG's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% |
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
2. Health
2.1 Basic Checks
ARG has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
ARG has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for ARG has been reduced compared to 5 years ago.
Compared to 1 year ago, ARG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.58 indicates that ARG is not in any danger for bankruptcy at the moment.
ARG's Altman-Z score of 3.58 is fine compared to the rest of the industry. ARG outperforms 61.36% of its industry peers.
The Debt to FCF ratio of ARG is 0.26, which is an excellent value as it means it would take ARG, only 0.26 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.26, ARG belongs to the top of the industry, outperforming 96.36% of the companies in the same industry.
A Debt/Equity ratio of 0.03 indicates that ARG is not too dependend on debt financing.
ARG has a Debt to Equity ratio (0.03) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Altman-Z | 3.58 |
ROIC/WACC1.79
WACC8.66%
2.3 Liquidity
A Current Ratio of 0.91 indicates that ARG may have some problems paying its short term obligations.
ARG has a Current ratio of 0.91. This is comparable to the rest of the industry: ARG outperforms 40.90% of its industry peers.
ARG has a Quick Ratio of 0.91. This is a bad value and indicates that ARG is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.77, ARG is doing worse than 61.23% of the companies in the same industry.
The current and quick ratio evaluation for ARG is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 550.00% over the past year.
ARG shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -18.96% yearly.
The Revenue has grown by 28.25% in the past year. This is a very strong growth!
ARG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.98% yearly.
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
3.2 Future
Based on estimates for the next years, ARG will show a very strong growth in Earnings Per Share. The EPS will grow by 39.37% on average per year.
Based on estimates for the next years, ARG will show a small growth in Revenue. The Revenue will grow by 2.76% on average per year.
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.67 indicates a correct valuation of ARG.
Based on the Price/Earnings ratio, ARG is valued cheaper than 93.98% of the companies in the same industry.
ARG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.30.
With a Price/Forward Earnings ratio of 6.60, the valuation of ARG can be described as very cheap.
94.60% of the companies in the same industry are more expensive than ARG, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 21.76. ARG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ARG is valued cheaper than 96.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, ARG is valued cheaply inside the industry as 97.99% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.42 | ||
| EV/EBITDA | 4.07 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of ARG may justify a higher PE ratio.
A more expensive valuation may be justified as ARG's earnings are expected to grow with 39.37% in the coming years.
PEG (NY)1.44
PEG (5Y)N/A
EPS Next 2Y39.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 5.29%, ARG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 13.23, ARG pays a better dividend. On top of this ARG pays more dividend than 99.12% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, ARG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
5.2 History
On average, the dividend of ARG grows each year by 24.22%, which is quite nice.
ARG has paid a dividend for at least 10 years, which is a reliable track record.
ARG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)24.22%
Div Incr Years1
Div Non Decr Years3
5.3 Sustainability
104.92% of the earnings are spent on dividend by ARG. This is not a sustainable payout ratio.
The dividend of ARG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP104.92%
EPS Next 2Y39.37%
EPS Next 3YN/A
TSX:ARG (7/11/2025, 7:00:00 PM)
2.28
+0.01 (+0.44%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryMetals & Mining
Earnings (Last)
Earnings (Next)
Inst Owners24.9%
Inst Owner ChangeN/A
Ins Owners14.03%
Ins Owner ChangeN/A
Market Cap368.15M
Analysts84
Price Target2.55 (11.84%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.29% |
Yearly Dividend0.16
Dividend Growth(5Y)24.22%
DP104.92%
Div Incr Years1
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-5%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)1.52%
Revenue beat(4)2
Avg Revenue beat(4)-1.93%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)4.76%
Revenue beat(8)3
Avg Revenue beat(8)-2.41%
Revenue beat(12)5
Avg Revenue beat(12)-1.33%
Revenue beat(16)5
Avg Revenue beat(16)-1.42%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.1%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.67 | ||
| Fwd PE | 6.6 | ||
| P/S | 1.43 | ||
| P/FCF | 6.42 | ||
| P/OCF | 4.79 | ||
| P/B | 2.64 | ||
| P/tB | 2.71 | ||
| EV/EBITDA | 4.07 |
EPS(TTM)0.18
EY7.89%
EPS(NY)0.35
Fwd EY15.16%
FCF(TTM)0.36
FCFY15.59%
OCF(TTM)0.48
OCFY20.86%
SpS1.6
BVpS0.86
TBVpS0.84
PEG (NY)1.44
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.31% | ||
| ROE | 17.61% | ||
| ROCE | 28.1% | ||
| ROIC | 15.53% | ||
| ROICexc | 19.28% | ||
| ROICexgc | 19.78% | ||
| OM | 20.77% | ||
| PM (TTM) | 9.51% | ||
| GM | 24.63% | ||
| FCFM | 22.22% |
ROA(3y)4.32%
ROA(5y)6.06%
ROE(3y)8.42%
ROE(5y)11.89%
ROIC(3y)8.34%
ROIC(5y)N/A
ROICexc(3y)10.81%
ROICexc(5y)N/A
ROICexgc(3y)11.1%
ROICexgc(5y)N/A
ROCE(3y)15.09%
ROCE(5y)N/A
ROICexcg growth 3Y-6.54%
ROICexcg growth 5YN/A
ROICexc growth 3Y-6.66%
ROICexc growth 5YN/A
OM growth 3Y-16.35%
OM growth 5YN/A
PM growth 3Y-20.62%
PM growth 5YN/A
GM growth 3Y-13.28%
GM growth 5Y134.26%
F-Score9
Asset Turnover0.98
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.03 | ||
| Debt/FCF | 0.26 | ||
| Debt/EBITDA | 0.05 | ||
| Cap/Depr | 62.58% | ||
| Cap/Sales | 7.51% | ||
| Interest Coverage | 31.48 | ||
| Cash Conversion | 90.71% | ||
| Profit Quality | 233.62% | ||
| Current Ratio | 0.91 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 3.58 |
F-Score9
WACC8.66%
ROIC/WACC1.79
Cap/Depr(3y)56.05%
Cap/Depr(5y)50.06%
Cap/Sales(3y)7.03%
Cap/Sales(5y)5.9%
Profit Quality(3y)227.23%
Profit Quality(5y)233.17%
High Growth Momentum
Growth
EPS 1Y (TTM)550%
EPS 3Y-18.96%
EPS 5YN/A
EPS Q2Q%-22.96%
EPS Next Y8.77%
EPS Next 2Y39.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)28.25%
Revenue growth 3Y-1.15%
Revenue growth 5Y9.98%
Sales Q2Q%-1.65%
Revenue Next Year2.05%
Revenue Next 2Y2.76%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y1739.14%
EBIT growth 3Y-17.31%
EBIT growth 5YN/A
EBIT Next Year85.18%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y391.24%
FCF growth 3Y-14.58%
FCF growth 5YN/A
OCF growth 1Y179.11%
OCF growth 3Y-13.96%
OCF growth 5Y43.83%